Brazil's National Congress to Vote on 'Gás do Povo' Subsidy Program as Central Bank Tightens IT Provider Regulations

The Brazilian National Congress is set to begin its legislative year on February 2, with a key focus on the provisional measure (MP) establishing the 'Gás do Povo' program. This initiative aims to subsidize the cost of 13 kg gas cylinders for about 15 million low-income families registered in CadÚnico, earning up to half a minimum wage per person. This was announced by Hugo Motta, President of the Chamber of Deputies, highlighting the government's commitment to easing household energy expenses.

Alongside this, the Congress will vote on an extraordinary credit of R$ 83 million for the rural sector and address the formation and leadership elections of permanent committees, maintaining previous party alignments. The Public Security Constitutional Amendment Proposal (PEC) will be debated, with a vote anticipated after Carnival.

Separately, the Central Bank of Brazil has updated regulations for Information Technology Service Providers (PSTIs) linked to financial institutions, enhancing governance, risk management, and technical requirements. These updated rules allow the central bank to demand increased capital and impose stricter compliance monitoring. The implementation period for these regulations has been extended to eight months to facilitate a gradual transition.

These regulatory reforms are aimed at strengthening the security, efficiency, and transparency of Brazil's financial and payment systems, reducing operational and cyber risks. This move follows a recent hacking incident at the Bank of Northeast Brazil, which disrupted Pix services and underscored the urgency of improved financial cybersecurity measures.

Together, these legislative and regulatory measures reflect Brazil’s ongoing efforts to enhance social welfare through subsidies while bolstering the security and stability of its financial sector.